Effective October 1, 2023, Sri Lanka’s hotel sector faces a significant transformation by implementing the Minimum Room Rate (MRR) policy. According to the new guidelines, hotels below the 3-star rating are mandated to charge a minimum of $50 per room, while 3-star establishments must set their rates at a minimum of $60. Meanwhile, 4-star hotels are required to charge a minimum of $75, and 5-star properties are expected to command a minimum rate of $100. The Sri Lanka Tourism Development Authority (SLTDA) introduced these changes to address the perceived issue of unreasonably low pricing, particularly among 5-star hotels, adversely affecting the country’s tourism sector’s reputation.
